Journal of Exclusive Management Science July 2016 - Vol 5 Issue 7 ISSN 2277-5684

Green Entrepreneurship for Green Economy- An Overview

* Dr. P.Subramanyachary
**Mr. R. Sarath kumar
*Associate Professor, Department of MBA, Siddharth Institute of Engineering and Technology,
Narayanavanam Road,Puttur-517583, Chittoor District, A. P
** Relationshop Manager, V Peracto Technologies, 2nd Cross, 1st Floor, Whitefield, Bangalore.
Abstract
The key role of green entrepreneurs in the transition of globalissation towards a needed
sustainable Economy is essential. This paper highlights the meaning of green entrepreneurship
and sustainable business along with opportunities and challenges to the green entrepreneurs
at present and in future. However, after the Rio+20 UN Summit in Brazil, some key issues
about the green economy must be clarified and given priority to reach a global consensus for
unique action. In this article, it is opined that a Green Economy cannot be mandated from
above but needs to be driven by entrepreneurs that respond to policy incentives through
innovation in management and technology as per changes in globe. On another side private
sector investments in green innovations do not just generate private profits only, but also large
positive externalities for society and the environment as a whole, especially when they do not
contribute only to the creation of a small niche market, but have the potential to be scaled up
to reach the sustainable transformation of a entire industry. This may imply that governments
in world focus more on the creation of an enabling environment for large-scale innovations that
contribute to the global green transformation of an entire industry rather than merely
subsidizing green niche markets by encouraging green entrepreneurship.
KEY WORDS: Entrepreneurship, green business, environmental entrepreneurs, green GDP
Introduction:
Green entrepreneurs propose business models that are not only economically
profitable but also create an environmental and social positive impact. India is one of the big
countries having the huge physical and Human resources that can help countrys growth and
development in enormous amount. Today Engineers are choosing very difficult path of
Entrepreneurship because of huge opportunities in the Green Sector. In the past few years
considerable interest and re-search have been devoted to understanding the determinants of
green growth. However, an important and relevant issue seems to have escaped the attention of
both economists and policy-makers: ultimately, green products and technologies are to be
introduced into the marketplace by 'green' entrepreneurs. However, the majority of policy
mechanisms that have tried to enable green growth are aimed at identifying the technological
innovations capable of mitigating the human impact on the environment and addressing global
environmental issues - such as climate change, land degradation and loss of biodiversity. From
a policy perspective, less attention has been paid to technology commercialization and to the
need to subsidize the public good component of green entrepreneurship.
I. Definitions of Green Entrepreneurship:
The term green entrepreneurship is defined in diffrent diffrent manners by the
researchers. Green Entrepreneurship made from two words Green & Etrepreneurship these
words toghether make Green Entrepreneurship.
In India green Entrepreneurship refers To open a new venture to create new
products and services that can help to conserving environment and to serve to Bottom of the
pyramid

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Journal of Exclusive Management Science July 2016 - Vol 5 Issue 7 ISSN 2277-5684
A widely acceptable definition by Esty and Winston, that Green entrepreneurship' is
that it is a kind of economic activity that places the nature and environment at the heart of a
business strategy and practices.
II. Features of Green Entrepreneurship:
1. Green Entrepreneurship is the process to open a new venture for developing sustainable
energy resources and to provide products and Services which are environment friendly.
2. Green Entrepreneurship provides an opportunities for skilled engineers to identify those
techniques which are more helpful to create or to provide services related to solar energy, wind
energy, tidal energy etc.
3. Green entrepreneurship has risk included with the potential of Green environment. Risk is
related to accepting new product or services, investment related problems, marketing
problems, technological problems etc.
III. Concepts of Green Entrepreneurship:
The term green entrepreneurship has three major variations which are commonly used
in the scientific realmecopreneurship, environmental entrepreneurship (enviropreneurship),
and sustainable entrepreneurship. Even though the terms are significantly related to each
other, differences do in fact exist, which will be examined in the following four paragraphs.
a.

Green entrepreneurship:

The term green entrepreneurship stems from Berle's book the green entrepreneur:
Business opportunities (1991) that touches on topics such as recycling, nature preservation,
renewable energy implementation, etc. He noted how "One man's garbage is another man's
treasure". An interesting observation is that almost all the definitions related to green
entrepreneurship are also related to the start-up phase of a company and the ability of the
person or the company to align activities with environmental protection. However, it is also
recognized that green and ethical entrepreneurs may well have mixed motivations; their
motives may not be solely green but a combination of green, ethical and social motives instead.
b. Environmental entrepreneurship
Environmental entrepreneurship, often labeled also as enviropreneurship, is a term
specifically used to identify entrepreneurial ventures which aim to put environmental
protection at the core of their business activity. They are often family-driven businesses
operating in a societal environment, and which are strongly oriented towards environmental
protection. On the contrary, York and Venkataraman argue that environmental
entrepreneurship happening in start-ups or SMEs can potentially supplement regulations,
corporate social responsibility, and activism in resolving environmental problems.
c.

Eco-preneurship

In 1990 Environmentalist Prof.Blue applied the term Ecopreneurship for the first time
in the literature, it described an individual who is aware of the environment and is able to
bring about the best results within the given circumstances. He argued that this ability can be
learned, and suggested precise steps that managers --ecopreneurs--need to pursue to bring
about the desired change. It was only in 1998 that ecopreneurship became strongly connected
to ecology and, within a few years, to sustainable development.
d.

Sustainable entrepreneurship

According to Kuckertz and Wagner Sustainable entrepreneurship is thus not only associated
with the promise of more traditional concepts of entrepreneurship, but bears additional
potential both for society and the environment" One of the outcomes from the UN Conference
on Human Environment (1972, [section] 6) states: The broad spectrum of the definitions of
sustainable entrepreneurship indicates a unique balance between a focus on societal,

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Journal of Exclusive Management Science July 2016 - Vol 5 Issue 7 ISSN 2277-5684
environmental, and economic issues. Elkington in 1998 made these three elements included in
the corporate reporting standards at the end of the last century known as the "triple-bottomline.
IV.

Opportunities in Green Entrepreneurship:

Today, despite the modest results achieved by large inter-national forums and the
retreat of public finances, green business is creating new economic opportunities for both
multinational corporations and small and medium-size enterprises (SMEs). Green enterprises
are increasingly successful in proving to shareholders and stakeholders that sustainability is
not just a cost but rather an opportunity to increase revenues and customer loyalty while
protecting the environment. To reinforce the business core for sustainability and promote a
culture of innovation within all staff divisions, all kinds of companies have been looking at
sustainability comprehensively, taking steps in the direction of water conservation, carbon
neutrality, solid waste reduction, post-consumption recycling, while measuring rigorously the
costs and benefits of each business unit. In some cases, companies have also managed to
leverage governments to improve standards, education and labour skills.
When we take Energy sector, India is vast country with a large amount of
renewable resources only need is to utilise them optimally. India is a only country who has
separate department for the non conventional energy in Ministry of Non-Conventional Energy
Sources (MNES). In October, MNES was renamed the Ministry of New and Renewable Energy.
According to Ministry of renewable resources specifically, 3,700 MW are currently powered by
renewable energy sources (3.5 percent of total installed capacity). This is projected to be 10,000
MW from renewable energy by 2012 and accelerated rural electrification programmes to lighten
100000 villages. India has 150GW of renewable energy potential, over 50% of it in wind and
solar power. Developing renewable energy can help India increase its energy security, reduce
the adverse impacts on the local environment, lower its carbon intensity, contribute to more
balanced regional development. The country has set a goal of capacity addition of 62,000
megawatt in the 11th Five Year Plan during the 2012-2017. The scope for investment in the
power sector over the next few years is well over $400 billion (over INR 180 billion) It is
estimated that over 9 GW of solar would be installed between 2011 and 2016 in India,
according to the report The India Solar Market: Strategy, Players, and Opportunities .
These data shows the immense opportunities for the Entrepreneurs to serve in
untapped markets because recently we are using very less of our capacity it needs to be
improve so we can meet our increasing demands. Entrepreneurs by opening new ventures
which provide solutions of the basic problems of the rural areas can bridge the gap in the
energy sources.
VI. Advantages of Green Entrepreneurship:
a.

Helpful to the Environment

Green manufacturing can directly benefit the environment. For example, green
manufacturing can help to reduce waste and harmful emissions and work toward preserving
resources that are finite and nonrenewable. Many customers want to support businesses that
implement green manufacturing, so by implementing this process, a business can also gain
new customers.
b.

Good turn to the Green Business

Because of the publics consensus about the need to protect the environment, a
company can directly improve its public relations by implementing green manufacturing.
Additionally, this process can lower costs for the business over the long term through the
implementation of more efficient systems and fostering a company culture dedicated to
innovation in processes. Further, these more efficient processes can result in lowering the
amount of waste a business produces.

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Journal of Exclusive Management Science July 2016 - Vol 5 Issue 7 ISSN 2277-5684
VII.

Disadvantages of Green Entrepreneurship:

a.

Surviving the Transition

One of the disadvantages of green manufacturing a business can experience relates to

the transition to green manufacturing. Businesses will need to locate funding sources to
finance the switch to green manufacturing. Further, the transition generally requires not only
the implementation of new manufacturing processes, but also the ability to design and build
the necessary technology and machinery to support green manufacturing. Additionally, a
business will typically have to find new talent to come in and educate current employees on
how to work in the new green manufacturing environment.
b.

International Trade Disadvantages

Another potential disadvantage to going green relates to international trade. Many

businesses hesitate to implement a green manufacturing system because they fear that this
process will become an impediment to the free flow of goods and profitable trade deals. This
hesitation can apply to a wide range of manufactured products and industries. For example, a
business might hesitate to implement green manufacturing because it fears losing an
international supplier that does not participate in green manufacturing.
Conclusion:
At its best, entrepreneurship is about harnessing the enthusiasm, initiative and
creative energy of individuals. When this dynamism is applied to developing business solutions
that help move enterprise along more sustainable ways, then the results have the potential to
be truly fascinatingand rewarding. The next decades will see rapid growth in global
population, industrialization and economic development. Resources are limited and we must
meet the needs of people. Green entrepreneurs are delivering on their commitments to provide
efficient and safe operations while being environmentally and socially responsible.
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